Business
The power keeps going out at the Port of Los Angeles, raising worries about its green future
The morning along the San Pedro docks began typically enough, summery but cool, as the first shift powered up the Port of Los Angeles. The giant cranes that fill the sky like skeletal bridges hummed to life. Semis already were lined up at the front gates, ready to take on loads of shipping containers as big as mobile homes.
But at a little past 7, an all-too-familiar trouble flared. A blip in the electric power lines so short it barely registered on the monitors of the L.A. Department of Water and Power brought major operations at the busiest seaport in the Western Hemisphere to an abrupt stop.
If the public face of the port is the forest of cranes and mountain range of cargo containers, its invisible heart is a network of computers that controls almost the entire operation. That system, along with a growing multitude of electric-powered equipment and vehicles, depends on an uninterrupted supply of electricity. Rebooting all those smart devices, sometimes requiring workers to climb to the tops of 200-foot cranes, can take several hours, no matter how brief the outage.
By the time everything was back up and running on that August morning, unloading schedules were scrambled, frustrated terminal operators struggled in vain to make up lost time and the freeway was backed up by dozens of semis.
“It’s a significant direct financial impact,” said Jeff Vogel, general counsel to the National Assn. of Waterfront Employers, whose members include container-handling companies. “We operate in a just-in-time economic model where getting that vessel in and out of the port as quickly as possible is critical.”
And the impact of power interruptions goes beyond the immediate costs and frustration. It threatens a commitment to meet major, long-term climate change goals by further electrifying port operations and the huge distribution system it supplies.
The brief surge was one of three already this month and the 12th power-related outage of the year so far. And the recent disruptions hit particularly hard as summer is a busy season for the ports, with back-to-school and Halloween deliveries as well as retailers getting a jump on Christmas shipments. The Port of L.A. had a record July, handling more than 939,000 containers.
“It’s a pretty big deal with the amount of cargo they have to move,” said Thomas Jelenić, a vice president at the Pacific Merchant Shipping Assn., which represents the terminal operators.
It will be an even bigger deal down the road. The port, with the DWP, is aiming to phase out greenhouse gas emissions by the end of the decade.
To meet this goal, the port will need almost twice as much power as it currently uses by the end of the decade, DWP estimates. But the surges and dips have raised serious concerns about whether the port and its tenants will have reliable energy to meet their needs.
The private companies that operate container-handling terminals long ago electrified the massive ship-to-shore cranes and are now investing millions to transition forklifts, gantry cranes and yard tractors that move and stack containers, as well as other vehicles and equipment that run mostly on diesel.
Container ships docked at the Port of Los Angeles.
(Luis Sinco/Los Angeles Times)
“We’re up against the zero-emission mandate by 2030, and I don’t know how that happens right now,” said one terminal executive who asked not to be identified. None of the seven container terminals at the Port of L.A. would talk publicly about their grievances, saying they were concerned how municipal authorities who are their landlord and power supplier might react.
Though the Port of L.A. and its Long Beach sister facility are on the leading edge, other seaports around the country also have been moving to electrify their operations. That’s placed more demand on the grid, with occasional brownouts having been reported at some ports in the East and Gulf coasts, said the Waterfront Employers’ Vogel.
But the problem appears to be particularly acute at the Port of Los Angeles, he said.
At the Port of Long Beach, where electricity is supplied by investor-owned Southern California Edison, terminal operators say power interruptions haven’t been an issue. In fact, Sean Gamette, the port’s managing director of engineering, couldn’t recall a single outage this year.
It’s helped that Southern California Edison’s lines are mostly underground and that the port, deemed a vital infrastructure, is exempt from brownouts, an outage resulting from a temporary drop in voltage. In the mid-2000s some $180 million was invested to upgrade the electric infrastructure at the port, said Gamette.
Gene Seroka, executive director of the Port of Los Angeles, was careful not to overstate, or minimize, the disruptions and the threat to the operations. Power surges tend to affect only some of the terminals, he said, and typically everything is rebooted in a couple of hours. If you have on average one brief outage a month, that might add up to one lost shift out of 36, Seroka said.
“I don’t think it’s shutting down this port. It is not terribly impacting competitiveness.” But he added: “If I’m a terminal operator and I’ve got to pay workers for a shift that they’re not working, that’s very painful. And so we’ve got to fix it.”
The issue isn’t just financial. Outages pose safety risks, too. At one terminal yard, a power surge in mid-July caused a driverless cargo-moving truck to crash into a container. “You can have a crane operator get violently stopped and jostled,” said another terminal manager.
Terminal operators say they think the source of the outages is at the utility, and have wondered whether the DWP has even recorded the momentary outages that cause costly delays on the docks.
DWP officials say it’s not a one-sided issue and, at the request of The Times, furnished a synopsis of the dozen outages this year. The utility said two were due to birds hitting power lines, one was caused by a truck explosion and another because a power transformer went bad.
But according to the account provided to The Times, in five outages, each lasting 10 seconds, no cause was found. Simon Zewdu, a senior manager of the DWP’s power system, said such momentary outages are usually due to an issue on the user’s side.
“Increasingly we’re seeing equipment installed by our customers that are very sensitive to minor voltage fluctuations,” he said.
Zewdu said the DWP is working to expand substations at the Port of L.A. and construct new underground lines as part of a $500-million project to be completed by 2029. These efforts should help both add power and improve reliability.
In addition, Zewdu and the Pacific Merchant Shipping Assn. began a fresh round of meetings this week to discuss strategies to mitigate outages and with an eye to their zero-emission goal. Among other things, Zewdu said he wants to install monitoring equipment on circuits on both the utility and terminal sides to discern the source of the power surges — something he said hadn’t been done yet because the terminal operators had not made a request or given permission to DWP’s power quality-monitoring team.
Jelenić, of the Pacific shipping group, said that until Monday he wasn’t even aware such a monitoring program at the DWP existed.
“Right now we’re deficient in both our near-term and long-term needs,” he said, but added that his group had a very encouraging meeting with DWP officials this week. “They were concerned about issues we’re having, they proposed solutions, and made clear, open lines of communication.”
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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